Kenya Treasury bills · auction of 4 February 2013
Kenya T-bill auction, 4 February 2013: 91-day at 8.164%, up 13 bps
At the Treasury bill auction dated 4 February 2013, the Central Bank of Kenya cleared the 91-day bill at 8.164% (up 13 basis points), the 182-day bill at 8.065% (unchanged) and the 364-day bill at 11.662%.
The auction was undersubscribed: bids totalled KES 11.1bn against KES 18.0bn on offer, a subscription rate of 62%. The government accepted KES 8.2bn, or 74% of what was bid.
The 364-day paper drew the most interest relative to its size, at 90% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 19.807%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,913 in 12 months on the 364-day bill, after tax
Put KES 100,000 into the 364-day bill at this auction and you get back KES 109,913 after 12 months: KES 9,913 in interest after 15% withholding tax (KES 11,662 before), about KES 826 a month.
For shorter money: KES 3,428 on the 182-day bill (6 months), KES 1,735 on the 91-day bill (3 months).
The Central Bank’s minimum bid is KES 100,000, and the government pays the full amount at maturity; the risk is Kenya’s government not paying, and the money is locked until then.
Kwa Kiswahili
Ukiweka KES 100,000 kwenye hati ya siku 364 kwa riba ya mnada huu, utarudishiwa KES 109,913 baada ya miezi 12: riba ya KES 9,913 baada ya kodi ya zuio ya 15% (KES 11,662 kabla ya kodi), yaani takriban KES 826 kwa mwezi.
Kiwango cha chini cha Benki Kuu ni KES 100,000. Serikali hulipa yote mwishoni mwa muda; hatari ni serikali kushindwa kulipa, na pesa haipatikani hadi muda uishe.
Compare with money market funds and bank deposits, after tax →
Results
By tenor
| Tenor | Rate | Previous | Offered | Bids | Subscription | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| 91-day | 8.164% | 8.036% | KES 4.00bn | KES 1.79bn | 45% | KES 1.67bn | 98.005 |
| 182-day | 8.065% | 8.066% | KES 4.00bn | KES 0.27bn | 7% | KES 0.25bn | 96.134 |
| 364-day | 11.662% | — | KES 10.00bn | KES 9.02bn | 90% | KES 6.26bn | 89.582 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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